Unsecured loans are available from traditional banks, credit unions, and online lending platforms that make it easy to apply online without having to visit a bank branch. These loans offer low interest rates for well-qualified borrowers, flexible loan amounts, and limited repayment terms and fees. Approved borrowers are rewarded with comparatively low APRs. SoFi does not charge origination fees, late fees, or prepayment penalties, a notable feature because personal loan lenders often charge origination or late payment fees at a minimum.
However, if you are considering a SoFi debt consolidation loan, please note that the lender does not offer direct payment to the borrower's other creditors. This means that the loan funds will be deposited into your bank account and you will have to pay your other lenders individually. The platform also offers customers a number of benefits and discounts, including unemployment protection and the ability to change the due date of their payment once a year. LightStream does not offer prospective borrowers the ability to prequalify for a loan.
This fact, combined with the minimum credit rating requirement, makes the platform better suited to those with a strong credit profile. Applicants with excellent credit are also more likely to get favorable terms. LightStream does not allow co-signers, but prospective borrowers can file a joint application. Marcus does not disclose this information.
Borrowers can access APRs between 6.99% and 19.99%, with a discount of 0.25% for those enrolled in autopay. And, like other major lenders, Marcus does not charge any fees, including those for registration, late payment and prepayment. In addition, borrowers can benefit from the platform's timely payment reward and flexible payment dates. As with many other top lenders, Marcus allows applicants to prequalify with a smooth credit withdrawal, making it easy to see your lending options without hurting your credit. While Marcus customers don't have access to a mobile app to manage their loans, the lender compensates for the loss of convenience with robust customer support options.
Borrowers can contact customer service seven days a week from 9 a.m. Eastern Time and access to extensive online resources. LightStream, the online lending division of SunTrust Bank, offers low-interest loans with flexible terms for people with good credit or higher. LightStream is known for offering loans for almost every purpose except for higher education and small businesses. According to the company's website, you could get a LightStream personal loan to buy a new car, remodel the bathroom, consolidate debts, cover medical expenses, or pay for a wedding. Unsecured loans don't require collateral such as a house, vehicle or savings account; instead they are backed only by the borrower's solvency and promise to repay the loan.
A common type of unsecured loan is a personal loan. Each lender will have different requirements that they must meet in order to be approved for a loan; however there are several common threads that many lenders often follow. Interest rates on unsecured personal loans can vary widely depending on the borrower's credit rating and the terms of the loan such as the amount and duration of the loan. Most unsecured personal loan lenders require borrowers to have good or excellent credit (defined as a credit score of more than 661 by VantageScore). So your chances of getting a loan will be much lower if you have a credit score of 660 or less or a history of late payments, debt collections or cancellations by lenders for debts you couldn't pay. Consumers with good or excellent credit may get a personal loan with a low interest rate but bad credit applicants will struggle to qualify for an affordable personal loan if they receive any offers. If you have bad credit you may be able to find a reputable provider for an unsecured personal loan; look out for lenders advertising unsecured loans for bad credit or unsecured loans without credit check; these are not standard personal loans but most likely payday loans which come with short repayment terms and high interest rates. Best Offered Average APR by Credit Score While unsecured loans may offer financial relief to some borrowers it is not a one-size-fits-all solution; if you're not sure if an unsecured loan is the best financial option for you then you may want to consider some alternative options. A personal line of credit is a type of revolving credit account that allows you to borrow a sum of money (up to a certain amount) and pay it off over time; unlike a loan you don't have to borrow the entire lump sum at once; you can choose how much you want to borrow at any given time and interest will only be charged on the amount of money you borrow. A personal line of credit doesn't have fixed rates like personal loans so your payments can vary from month to month; usually when you use a credit card if you don't pay the balance before the payment due date arrives then you'll have to pay interest; however some companies offer introductory 0% credit card promotions to help borrowers get around that; with this approach customers can avoid paying interest on their purchases even when the payment is due; however the 0% APR usually only lasts for a certain period of time and can last between 12 and 21 months. Like a personal line of credit, a home equity line of credit (HELOC) is also a type of revolving credit account; the difference is that HELOCs are secured by your home equity so they usually come with lower interest rates than unsecured loans but they also come with more risk because if you fail to make payments then your home could be foreclosed upon.